Kenvue, the maker of Tylenol and Band-Aid, surpassed Wall Street's profit forecasts for the first quarter on Tuesday and announced a 4% reduction in its global workforce as part of the company's strategy to grow its key brands.
According to Reuters, the company's shares saw a nearly 4% increase in premarket trading.
However, they have fallen approximately 11% this year, as of Monday's close.
Since separating from Johnson & Johnson last year, Kenvue has concentrated on expanding its 15 priority brands. In February, the company announced it would boost its advertising budget by 15%, or about $300 million, throughout the year.
On Tuesday, Kenvue stated it aims to achieve annual pre-tax gross savings of approximately $350 million by 2026 through its cost-cutting efforts, although it anticipates incurring $275 million in restructuring costs in both 2024 and 2025.
As of the end of December, the consumer health firm had 22,000 employees, according to its annual report.
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Kenvue reported an adjusted first-quarter profit of 28 cents per share, exceeding the analysts' expectations of 26 cents.
The self-care division, which includes cough and cold remedies like Tylenol and Benadryl, generated $1.70 billion in net sales, a 3.5% increase from the previous year and higher than the average analyst forecast of $1.56 billion, based on LSEG data.
The skin health and beauty segment, which includes brands such as Neutrogena and Clean & Clear, saw a 5% decrease in sales to $1.05 billion for the first quarter, aligning closely with estimates.
Kenvue has been working to enhance the visibility of its skin health products in U.S. stores in an attempt to boost sales, which have been sluggish in recent quarters.
The essential health division, which includes brands like Listerine, Band-Aid, and Stayfree, reported $1.14 billion in sales, up 3.7%, though this was slightly below the analysts' expectation of $1.17 billion.
Based in New Jersey, Kenvue posted first-quarter revenues of $3.89 billion, topping the forecast of $3.79 billion.
The company has reaffirmed its annual profit projection range of $1.10 to $1.20 per share.
